Riccardo Vecchio, Alessia Lombardi, Luigi Cembalo, Francesco Caracciolo, Gianni Cicia, Felicia Masucci and Antonio Di Francia
Consumer interest and willingness to pay (WTP) for omega-3 enriched water buffalo mozzarella cheese are evaluated through an in-store experimental auction. The purpose of this…
Abstract
Purpose
Consumer interest and willingness to pay (WTP) for omega-3 enriched water buffalo mozzarella cheese are evaluated through an in-store experimental auction. The purpose of this paper is to estimate individual WTP for enriched mozzarella cheese and related it to self-efficacy beliefs and outcome expectations of omega-3 consumption, following regulatory focus theory.
Design/methodology/approach
Data were collected in May-June 2015 from a sample of 150 consumers in Southern Italy. A structural equation modelling procedure was implemented.
Findings
The results show a significant role is played by prevention outcome expectations on consumer behaviour. While promotion outcome expectation constructs proved non-significant, self-identity correlates with prevention outcome expectations.
Research limitations/implications
There are several limitations that the authors are aware of regarding this study. First of all, since the authors rely on self-reported measures, optimistic bias might have affected participants’ responses (Weinstein, 1980). Second, results may be influenced by the choice of the specific information provided to consumers for the analysis; different claims and different information framings should be tested (LeBoeuf and Shafir, 2003).
Practical implications
Implications stemming from the results encourage the promotion of omega-3 enriched mozzarella cheese based on stimulating outcome expectations, bearing in mind that individual motivations should be enhanced by self-identity beliefs.
Originality/value
Although the combined role of self-efficacy and outcome expectations on personal intention to adopt healthy behaviour has already been demonstrated (Keller, 2006; Tudoran et al., 2012), to the best of the knowledge no previous study relates individual behaviour to an intention measured as a WTP for an actual product. In addition, current study has applied a non-hypothetical BDM (from Becker et al., 1964) auction in-store experiment.
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Luca Rossetto and Luigi Galletto
The purpose of this paper is to analyze the market of rosé wines in Italy, to outline retail strategies and to investigate to what extent the price is affected by branding these…
Abstract
Purpose
The purpose of this paper is to analyze the market of rosé wines in Italy, to outline retail strategies and to investigate to what extent the price is affected by branding these wines.
Design/methodology/approach
A survey has been carried out on retailers by collecting data about wines as intrinsic attributes (grape variety, blending, origin, alcohol content, etc.) and extrinsic attributes (brand, price, packaging, etc.) and about outlet and retail environment. The hedonic analysis required a rearrangement of data survey, while a Box-Cox transformation allowed to control the strong heteroskedasticity detected of the data.
Findings
Results provide strategies for still, semi-sparkling and sparkling rosé market segments. Still rosé wines are strongly differentiated, while the price is affected by the appellation, grape variety, blending, brand and outlet features. Two main strategies are suggested: the first focuses on appellations endorsing consumer’s brand loyalty; the second is driven by retailers while involving weaker brands. Different pictures emerged for semi-sparkling and sparkling wines, as producers and retailers tend to follow consumer’s preferences for fresh and easy drinking wines as well as to extend the product assortment.
Research limitations/implications
Results for sparkling rosé wines cannot be generalized. The high fragmentation hinders the hedonic model performance in capturing the price effects of brands, appellations, grape variety and wine blend.
Practical implications
The hedonic analysis provides suggestions for rosé wine producers that should reinforce their brand through associations among intrinsic attributes, such as appellation, and extrinsic ones, such as price, while satisfying retailer requirements.
Originality/value
The paper contributes to the knowledge base about the Italian rosé wine market, which is mostly export-oriented. Model results help to understand why the domestic consumption is stagnant with respect to other countries such as France or the USA.
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Luigi Galletto, Francesco Caracciolo, Vasco Boatto, Luigino Barisan, Deborah Franceschi and Marica Lillo
Consumer likeability and willingness to pay (WTP) for two Italian sparkling wines, (Conegliano Valdobbiadene Prosecco DOCG and Prosecco DOC) are evaluated through a…
Abstract
Purpose
Consumer likeability and willingness to pay (WTP) for two Italian sparkling wines, (Conegliano Valdobbiadene Prosecco DOCG and Prosecco DOC) are evaluated through a non-hypothetical Becker-DeGroot-Marschak (BDM) auction during a wine-tasting experiment. The purpose of this paper is to estimate individual WTP and relate it to likeability for both wines, with and without supplying additional information on their features.
Design/methodology/approach
Data were collected in May–June 2019 from a sample of 99 consumers in Northern Italy. A non-hypothetical BDM auction in a wine-tasting experiment was implemented.
Findings
The results show that the additional information plays a significant role in widening the WTP gap between the two geographical indications (GIs), while the blind tasting narrows this gap. The “superiority” of the Conegliano Valdobbiadene Prosecco DOCG is confirmed but relies more on its better reputation than its better taste.
Research limitations/implications
The authors are aware of two main limitations in the study. The first is the territorial composition of the consumer sample. The second is the selection of the Prosecco bottles used in the experiment. The results are considered pioneering and need to be verified by additional experiments with different consumer and bottle samples.
Practical implications
Promotional suggestions for the Tutelary Consortia of the two GIs stem from the results. The Prosecco DOC should primarily stress its likeability, while the Conegliano Valdobbiadene Prosecco DOCG should primarily emphasise the reasons for its “superiority”.
Originality/value
To the best of the authors' knowledge, no previous study has related likeability and WTP for similar GI wines produced in contiguous areas. Moreover, the current research has applied a non-hypothetical BDM auction in a wine-tasting experiment.
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Domenico Carlucci, Bernardo De Gennaro, Luigi Roselli and Antonio Seccia
The purpose of this paper is to analyse the relationship between the price of extra virgin olive (EVO) oil and its main quality attributes, in the specific case of…
Abstract
Purpose
The purpose of this paper is to analyse the relationship between the price of extra virgin olive (EVO) oil and its main quality attributes, in the specific case of business-to-consumers electronic commerce (B2C EC) channel. The final objective is to provide useful insights for small and medium-sized enterprises (SMEs) interested in online selling of EVO.
Design/methodology/approach
A hedonic price model was estimated considering the following attributes: packaging, cultivar composition, organic certification, oil extraction method, origin certification and localization of selling firms. A survey was performed in 2012 considering 169 virtual stores of SMEs (farms, mills and bottlers) located in all the main Italian olive-growing areas. A data set of 667 references was used to estimate the implicit prices of considered attributes.
Findings
The EVOs sold through virtual stores are highly differentiated on the basis of several quality attributes among which the most important is the certification of origin (protected denominations of origin/protected geographical indication). Therefore the firm location could generate considerable advantages or disadvantages in adopting a B2C EC strategy.
Research limitations/implications
Future researches should develop a comparison between the premium prices and costs associated to each attribute in order to find the best product differentiation strategy. An accurate analysis about the implementation and management costs of EC systems as well as an examination of interactions between online and offline sale channels is needed. It would be useful to compare the manufacturer direct sell business model with other business model.
Originality/value
Few studies applied the hedonic price model to analyse the retail olive oil market. Nevertheless, no studies have analysed the market of EVO sold in virtual shops.
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Riccardo Vecchio, Alessandra Rinaldi and Luigi Moio
The purpose of this paper is twofold: first, to investigate whether consumer preferences differ for wines with diverse price points and second, to analyze the effect of…
Abstract
Purpose
The purpose of this paper is twofold: first, to investigate whether consumer preferences differ for wines with diverse price points and second, to analyze the effect of denominations of origin information on preferences.
Design/methodology/approach
In, total 150 regular wine buyers expressed their willingness-to-pay (WTP) for 12 red wines of 3 denominations (Chianti Classico DOCG, Morellino di Scansano DOCG and Toscana IGT) with three price points (basic=€5, medium=€10 and high=€20) in an incentive-compatible experiment, involving two consecutive rounds: a blind tasting and an informed tasting.
Findings
The findings reveal that price points are not statistically related to consumer preferences measured in the blind round, while information on the denomination of origin leads to a statistically significant increase in WTP for wines of all price points for all denominations.
Originality/value
This paper investigates whether Sangiovese-based wines at varying levels of price points (basic, medium and high) receive different WTP by consumers in non-hypothetical experimental auctions. Furthermore, the effect of denominations of origin information on preferences is explored, comparing evaluations without and with this specific information.
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Alberto Incollingo, Serena Santis and Michela Bianchi
This study aims to explore the process of identifying and defining multiple capitals in the integrated report (IR) of a government-owned tourism company.
Abstract
Purpose
This study aims to explore the process of identifying and defining multiple capitals in the integrated report (IR) of a government-owned tourism company.
Design/methodology/approach
Interventionist research was conducted using a case study design. The researcher was directly involved in developing the first IR of Zètema, a heritage and tourism company owned by the Municipality of Rome. The research team analyzed internal reports, business model (BM), strategic plan and marketing plan, and collected data through semistructured interviews and participation in company meetings.
Findings
A template based on a step-by-step deductive process to select and define relevant capitals was derived. Following this process, an appropriate form of capital emerged: “cultural capital”. Furthermore, this study emphasizes a novel awareness of the different meanings that capitals can assume as inputs and outcomes of a BM.
Originality/value
This study meets the demand for empirical research that investigates real information in integrated reports intended for those for whom value is created. Thus, the paper contributes to the existing knowledge on integrated reporting by examining the partially explored concept of capital, particularly its identification process. Furthermore, this study provides support to preparers of integrated reports by defining a conceptual reference model for the disclosure of significant capitals and underlining the importance of distinguishing capitals as input or outcome.
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Gustavo Ferro and Ignacio Benito Amaro
Given the growing supply of wines and the large number of new consumers with purchasing power but lacking knowledge of the subtleties of high-quality wines, expert opinions are…
Abstract
Purpose
Given the growing supply of wines and the large number of new consumers with purchasing power but lacking knowledge of the subtleties of high-quality wines, expert opinions are used for consumers as proxies for quality. This study aims to determine the determinants of prices in top-quality wine market. The authors also seek to estimate the role for country of origin, grape, producing region and winery in prices. And, finally, the authors try to show how countries, regions and wineries can help increase their position in international rankings.
Design/methodology/approach
The authors try to answer: What factors explain the price of top-quality wines (defined as best rated in a standardized ranking)? To some extent, in the hands of producers influence prices, which imply long-term decisions or large investments in land and marketing. Other variables that consumer value does affect prices. The authors try also to detect undervalued or overvalued wines, grapes, regions, wineries or producer countries. The authors estimate an econometric model of hedonic prices using a 14-year sample of the Wine Spectator’s 100 top-rated wines for the American market between 2003 and 2016, totaling 1,400 observations. The sample is a great cross-section because each wine is unique.
Findings
The authors’ contribution is twofold: the determination of the price explanatory values and the identification and attribution of price differences by country, grape, region and winery. Also, the authors detected grapes, countries, regions and wineries which are overvalued or undervalued with respect to the average prediction of the model.
Research limitations/implications
The findings are useful to understand the role of price explanatory variables, as well as for making policy and managerial decisions. From the model, collective or managerial actions can be derived to increase particular wines’ positions in international rankings. The proxy for “quality” in the study is not the only possible definition.
Practical implications
In some cases, managerial choices could be conditioned by the policies or history. There is some room for collective action and public policies to improve regions’ and countries’ reputation.
Social implications
There are clear synergies for policies that can raise the prestige of countries and regions and their spillovers on the brand name reputation of individual wineries.
Originality/value
The results, policy and managerial implications are of interest for business, countries interested in improving their position in international rankings and for consumers to make more informed decisions.